alternative news


May 31, 2011 By Joseph P. Farrell

As you've guessed by now, I've been watching Russia and China closely, and especially their relationships with South America, and I believe we're witnessing the unraveling of the American empire. Yesterday I commented on Russia's growing influence in South America, and today, I'd like to address China's. Consider the following articles:

Deals Help China Expand Sway in Latin America

China\'s Big Move Into Latin America

Yesterday I mentioned that Brazil would be a country to watch and this is the reason why: The USA is no longer Brazil's largest trading partner, China is, and hence, good relations with China will be more important than good relations with the USA to Brazil, and this trend is only going to continue, for after all, what does the USA make and export any more except war? Note that emphasis on war, and note what the second article says about China's policy vis-a-vis South America:

"China has moved aggressively to fill a vacuum left by the United States in recent years, as the US focused on wars in Afghanistan and Iraq and the global economic crisis sapped its economy.

"'China is rising while the US is declining in Latin America," Riordan Roett, a professor of international relations at Johns Hopkins University, said by telephone while São Paulo. "China is all over this region. They are following a state-driven policy to expand their peaceful presence."

That's not all: Brazil has figured mightily in the geopolitical realignment that Moscow and Beijing have been championing for some years: "China has forged a strategic alliance with Brazil that's allowed the two countries to partner with India and Russia in the so-called BRIC grouping, which is demanding a greater voice in global political and economic affairs. Indeed, China is making inroads with developing countries worldwide." And why shouldn't China be making inroads with these countries, when the USA-sponsored IMF and other "world banks" have simply been imposing American economic imperialism on them for decades.

Note the hidden implications of the first article from the New York Times: "One of China’s new deals in Latin America, the $10 billion arrangement with Argentina, would allow Argentina reliable access to Chinese currency to help pay for imports from China. It may also help lead the way to China’s currency to eventually be used as an alternate reserve currency. The deal follows similar ones China has struck with countries like South Korea, Indonesia and Belarus.

"As the financial crisis began to whipsaw international markets last year, the Federal Reserve made its own currency arrangements with central banks around the world, allocating $30 billion each to Brazil and Mexico. (Brazil has opted not to tap it for now.) But smaller economies in the region, including Argentina, which has been trying to dispel doubts about its ability to meet its international debt payments, were left out of those agreements."

In other words, the Chinese yuan, a state-issued debt free currency, is being quietly promoted as a regional reserve currency by the Chinese government, while the private monetized debt currency of the USA, the Federal reserve
"dollar" is being quietly pushed out, for in spite of American efforts to prop it up, Brazil - there's that country again - is simply not "opting" to tap it for now.

Now in case you haven't caught the significance of that yet, this means nothing less than an almost total declaration of war against those bankster-issued monetized debt currencies. So we may be witnessing the most serious challenge to the banksters in....well...centuries.

On this one, my hat's off to China.